The Research Of Sector Rotation In China Capital Market In Business Cycle

In west, there are already many studies and research on the businesscycle and sector rotation in the stock market, which include the famousinvestment clock and Jeffrey Stangl's sector rotation theory. The academicand industry are both eager to find the rule and principle that dominates thebusiness cycle, and the rule that dominates the stock market in specific phaseof business cycle. The article introduces some of the popular business cycleand sector rotation theories and chooses the Merrill Lynch's investment clockto analyze china's business cycle in the last decade. The article uses specificdimension and more practical way to identify china's business cycle,analyzes the performance of China stock market in each specific phase in thebusiness cycle and reaches the rule applicable to China stock market.Meanwhile, the article builds up a feasible trading strategy under the rule ofsector rotation in china stock market, which beats the market successfully.